Q3 2024 Third Coast Bancshares Inc Earnings Call Transcript
Key Points
- Third Coast Bancshares Inc (TCBX) achieved a record-setting earnings quarter with diluted earnings per share reaching $0.74.
- The company reported strong loan production with $131 million in net loan growth over the prior quarter.
- Improved credit quality trends were noted, with nonperforming loans to total loans improving to 0.62% from 0.65%.
- The bank achieved a return on assets of 1.14% and an efficiency ratio of 59.57%, indicating improved operational efficiency.
- Net interest margin improved by 11 basis points due to superior balance sheet planning and execution.
- The company incurred a loss of $480,000 from selling $15.6 million in low-yielding mortgage-backed securities.
- Despite improvements, the yield on investment securities declined slightly to 5.99%.
- Noninterest expenses, although declining, remain significant at $25.6 million.
- The company has a relatively high cost of funds, which could impact profitability if not managed effectively.
- Loan growth, while strong, is described as potentially 'lumpy,' indicating variability and unpredictability in future quarters.
Greetings, and welcome to the Third Coast Bancshares third-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.
It is now my pleasure to introduce Natalie Hairston of Investor Relations. Thank you, Natalie you may now begin.
Thank you, operator, and good morning, everyone. We appreciate you joining us for Third Coast Bancshares conference call and webcast to review our third quarter 2024 results. With me today is Bart Caraway, Chairman, President and Chief Executive Officer; John McWhorter, Chief Financial Officer; and Audrey Duncan, Chief Credit Officer.
First, a few housekeeping items. There will be a replay of today's call, and it will be available by webcast on the Investors section of our website at ir.thirdcoast.bank. There will also be a telephonic replay available until November 1 and more information on how to access these replay features was included in yesterday's earnings release.
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